<% String pageType = "About"; %> <% String subPageType = "Mortgage Library"; %> <%@ include file="includes/header.inc"%> Interest Only Mortgages

With an Interest Only mortgage, your mortgage payment covers interest only with no principal reduction for a designated period of time. When the interest only period ends, your payment is adjusted to include principal and interest in an amount that will fully amortize your loan over the remaining years of your mortgage. This means your payments will be lower during the interest only period and increase once that period if over.

An Interest Only mortgage can help you lower your monthly payment, leaving more money in your budget for other investments and expenses. In an Interest Only mortgage you are choosing to forego building equity during the interest only period. Of course, you can choose to make payments on the principal of the loan at any time.

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